American InterContinental University is owned by Career Education Corporation
(CEC), a publicly traded company, and is accredited by the Southern Association
of Colleges and Schools (SACS). AIU consists of seven campuses and AIU Online,
a division of the Atlanta (Buckhead), Georgia campus. AIU Online offers five
undergraduate online degrees and three online master's degrees. These online
degree programs include:

All AIU campuses operate on a ten-week quarter system. AIU Online, and some
of the onsite campuses, offer courses in an accelerated format through two five-week
mini terms in each of the ten-week quarters. Students enrolled in the online
degree programs are required to take a minimum of one to two courses per term
depending upon their degree program of study.

Waivers

AIU requested the 50 percent waivers. Since AIU was not approaching either
of the 50 percent thresholds, and does not offer correspondence courses, the
Department elected to defer a decision on granting these waivers until the time
that AIU needs them.

Financial Aid Issues/Alternatives

AIU brings to the Demonstration Program a well-designed and comprehensive
online student services system, including financial aid advising and administration.
AIU has integrated systems that, among other things, allow for dynamic recording
of attendance in the student records system (the most recent academic activity
is recorded as the last date of attendance in the student's academic record)
and electronic SAP verification. AIU is offering their Online Financial Aid
Processing Center model as one solution to the complex systems issues associated
with non-traditional education. It will be important to evaluate this system
and its potential for wider adoption or replication. Since joining the Demonstration
Program, AIU Online has implemented an electronic signature option for students
in all documents incurred during their degree matriculation.

Additional Goals for Participation

AIU will work with the 81 other CEC institutions to develop formal articulations
of courses to facilitate degree completion for graduates of short career-focused
programs. The goal is to increase the number of these students who pursue an
associate or bachelor's degree by providing access to online degree programs.
AIU Online has experienced a continued increase in participation in this option
since joining the Demonstration Program.

Pending Changes

AIU received state authority from Georgia in July 2002 and Illinois in December
2002 as a branch campus of the main campus in Atlanta, Georgia. Their objective
is to establish AIU Online as a separate campus of the AIU system rather than
a distance education services center for the main campus in Georgia, which is
its current status. They obtained approval as a branch campus from their accreditor
(SACS) in December 2002 and continued to be recognized as a division of the
main campus by the Department of Education.

Consortial Agreements

After joining the Demonstration Program, AIU expanded its consortium agreements
with many other CEC-owned institutions and continues to deliver general education
and lower level program courses to students enrolled at onsite CEC-owned colleges
and schools (includes AIU onsite campuses). Participation in the consortium
has continued to increase since AIU joined the Demonstration Program.

Demonstration Program Cohort

American InterContinental University joined the Distance Education Demonstration
Program in July 2001 as part of the second cohort.